Question
Awanita Enterprises sells computer flash drives for $1.75 per unit. The unit variable cost is $0.07. The breakeven point in units is 3,600, and the
Awanita Enterprises sells computer flash drives for $1.75 per unit. The unit variable cost is $0.07. The breakeven point in units is 3,600, and the expected sales in units are 4,600. What is the margin of safety in dollars?
A. $6,300
B. $70
C. $1,680
D. $1750
Colossal Beverages Company sells two products, A and B. Mist predicts that it will sell 2,500 units of A and 2,000 units of B during the next period. The unit contribution margins are $4.00 and $5.00 for products A and B, respectively. What is the weightedaverage unit contribution margin? (Round your answer to the nearest cent.)
A. $4.56
B. $9.00
C. $4.44
D. $4.50
Emeka Company has provided the following information:
Sales price per unit | $42 |
Variable cost per unit | 16 |
Fixed costs per month | $18,000 |
Calculate the contribution margin per unit.
a. $58
b. $42
c. $16
d. $26
Tentacle Television Antenna Company provided the following manufacturing costs for the month of June.
Direct labor cost | $132,000 |
Direct materials cost | 84,000 |
Equipment depreciation (straightline) | 23,000 |
Factory insurance | 11,000 |
Factory manager's salary | 11,200 |
Janitor's salary | 5,000 |
Packaging costs | 19,000 |
Property taxes | 16,000 |
From the above information, calculate Tentacle's total fixed costs.
a. 43,200
b. $66,200
c. $61,200
d. $301,200
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